Flood Insurance

Make it Simple- Flood Insurance

   Our next installment in the Make It Simple series is Flood Insurance. Consumers are rarely required to carry flood insurance unless they are in a Flood Zone. Then their mortgage house will most likely require they carry a flood insurance policy. But you should talk to your agent and make sure you know if you should have a flood policy or not, regardless of which zone you are in. 

   Your flood policy has a Dec page, just like every other insurance policy. It will “declare” who you are, what property you have covered, the insurance limits you have chosen and how much you are paying.

   Flood Insurance is backed through the federal government under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program regardless of who you buy the policy from. There are various levels of coverage and deductibles to choose from. You will have a separate deductible for both the building and the contents. Unlike Home and Auto insurance, Flood insurance only covers You. There is no “other party” liability in flood coverage.

Building Coverage: This covers physical damage to your home due to rising flood waters, keeping in mind- two properties, or two acres, have to be flooded for flood insurance to pay out. This covers the building and its foundation, electrical and plumbing systems, a/c equipment, furnaces, walls, flooring… etc. The amount of building coverage should be based on your dwelling/replacement cost amount on your home insurance policy. The flood cannot be higher than the home insurance amount. It usually caps at $250,000 for residential homes.

Contents Coverage: This covers physical damage to personal property such as clothing, furniture, electronics, certain valuable items, such as artwork (up to $2500). It will not cover currency or precious metals.

Deductibles: The Building and Contents coverage have a separate deductible. The higher the deductible, the lower the premium, but the more you will pay out of pocket in the case of a claim.  

  That’s basically it for Flood coverage. It is a simpler Dec page than home and auto with fewer coverages to understand. But please make sure you do understand what it will and will not cover and how much coverage you need to have. 

   If you have questions about your home, auto and commercial insurance, please call Brockman Premier Insurance at 877-987-8683 or email us at brian@brockmanpremier.com.
Please visit our website for more insurance tips and information.

Flood Insurance

Could you be Under Water?

   Did you know that your home can flood in as little as 1 inch of water? Or that your car can be carried away by as little as 2 feet of flood water? Since you live where it rains, you are subject to the possibility of flooding. And your Home insurance policy will not cover it! I am serious. Even if you have all the bells and whistles of additional coverage on your policy, you do not have flood coverage on your home insurance policy. You only have flood coverage if you have bought a Flood Insurance Policy.

    Fast melting snow, severe storms and heavy rainfall can cause flooding far inland, as those of us in Texas are experiencing right now! People living outside of the high risk flood areas file more than 20% of the claims in the National Flood Insurance program. Those same claims receive 1/3 of the disaster assistance for flooding. So it is not just the high risk areas filing the flood claims. The average residential flood claim is around $30,000. But this doesn't include the claims from Catastrophes such as the flooding we are seeing in Texas.  

   You can obtain a policy through the federal government under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program or you can go through private insurers. Private insurance may offer different limits of coverage and premiums based on the coverage and deductibles.  There are various levels of coverage and deductibles to choose from. You will have a separate deductible for both the building and the contents.  

   A flood policy will cover the building and the contents. Personal property coverage is optional, so be sure to discuss what you want with your agent. Flood policies will pay out as long as two or more properties are flooded. Premiums usually start at $300 annually and go up from there, depending on the amount of coverage and the risk factors of the area. If you are in a high risk zone, your mortgage company will require a flood policy. If you are in a moderate-low risk area, a flood policy is optional. Of course, high risk areas will have higher premiums than the moderate-low risk areas.

   Talk with your insurance agent to decide if this coverage would be a good fit for you. There is often a 30 day wait period for any flood policy to take effect, so you can't just buy a flood policy that will go into effect today. But if you are closing on a home and you have a mortgage, then the 30 day wait period will be waived.

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Flood Insurance

Don't Get Caught Under Water!

  Most people believe you are safe from flooding if you don't live on the coast. The truth is if you live where it rains, you are subject to the possibility of flooding. Certain areas are more prone to serious flooding than others. But keep in mind, flooding can happen anywhere. 
    Fast melting snow, severe storms and heavy rainfall can cause flooding far inland. People living outside of the high risk flood areas file more than 20% of the claims in the National Flood Insurance program. Those same claims receive 1/3 of the disaster assistance for flooding. As little as 1 inch of water can cause damage to your home. Damage your Home insurance policy will not cover. A car can be carried away by as little as 2 feet of flood water. These are just a few good to know  Flood Facts.
   The average residential flood claim is around $30,000. This doesn't include the claims from Catastrophes.  A flood policy will cover the building and the contents. Personal property coverage is optional, so be sure to discuss what you want with your agent.  Premiums can start as low as $150 annually, depending on the amount of coverage and the risk factors of the area. If you are in a high risk zone, your mortgage company will require a flood policy. If you are in a moderate-low risk area, a flood policy is optional.High risk areas will have higher premiums than the moderate-low risk areas.
   You can obtain a policy through the federal government under FEMA's National Flood Insurance Program, or you can go through private insurers. Private insurance may offer different limits of coverage and premium.  There are various levels of coverage and deductibles. You will have a separate deductible for both the building and the contents.  Talk with your insurance agent to decide what would be best for you. There is typically a 30 day wait period for any flood policy to take affect. Keep this mind when your mortgage company requires a flood policy on your new home. You will need to file for the policy at least 30 days before your closing date. 
 
Thanks for reading!
Nancy Brockman

As always, please contact The Brockman Agency with any questions on your Home, Auto, Business or Life Insurance.
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